TOWN OF OCEAN CITY

FISCAL YEAR 2021 PROPOSED BUDGET

SERVICE CENTER FUND AND IMPOUND LOT

Print/Download Data Summary

BUDGET HIGHLIGHTS:

 

REVENUE:

Fuel revenue is dependent on fuel cost, and the Energy Administration has projected that gasoline fuel rates will increase, while diesel fuel rates will decrease slightly from the rates budgeted in FY 20. Gallons of both types of fuel are anticipated to decrease in FY 21. Overall fuel revenue is anticipated to decrease $20,414. Parts revenue has been projected to increase for FY 21. Labor rates for light equipment are set at $67 per hour and labor rates for heavy equipment are currently $86 per hour. It has not been necessary to increase labor rates for several years. Vehicle labor revenue has also been budgeted to decrease for FY 21.

 

PERSONNEL CHANGES:

Nineteen full-time employees are funded in the Service Center budget and there are two full-time positions in the Impound Lot. A step increase effective on January 1, 2021 has been included. Part-time salaries in the warehouse were funded at $3,536. Funding has been included for a seasonal vehicle technician. In the Impound Lot division, funding remains at $16,650 for seasonal employees. Allocations for health insurance and retirement increase for this division, while the allocations for retiree health and worker’s compensation decrease.  A tool allowance of $500 per mechanic has been included in the Service Center budget.

 

CHANGES IN OPERATIONS:

Contracted Services expenses are expected to increase. This category includes building and equipment maintenance, training and travel, printing costs and tipping fees, as well as other contracted services. Training includes attendance at the National Procurement Institute conference for one employee, online training for Purchasing staff, and automotive training for the mechanics. Building and equipment maintenance costs are projected to increase $11,754. Supplies and Materials increase $3,910. The FY19 budget included the purchase of an intelligent diagnostic center for the garage at a cost of $19,000. A tire truck changer has been included in FY 21 at $20,000, and five hose reels for the fleet garage have been included at $8,110. Purchases of fuel and inventory are the major expenses in this department. Vehicle fuel is purchased by this department and charged to all other City departments as it is consumed. This expense is reflected in the vehicle fuel line item in all City departments and is a notable cost for Transportation, Solid Waste and Police. Vehicle fuel costs are expected to increase, but the number of gallons purchased is expected to decrease. The estimate for fuel purchases decreases $41,153 for FY 21. Estimates of inventory for parts and supplies has been budgeted to increase $15,854 for FY 21. Energy costs for this department are anticipated to decrease slightly. Intragovernmental allocations for IT Services and general overhead decrease for this division, while the allocations for radio lease, vehicle lease and insurance increase.